It may surprise you to learn that you can save hundreds of dollars on your auto insurance just by shopping around. Yet, it truly is a buyer’s market. There can be hundreds of insurance providers in your state — all with their own set of rules and rates. The best way to pay less on auto insurance rates is to be an all-around model citizen. Practice safe driving techniques, choose a higher deductible, and maintain a good credit score to show that you can be trusted.
Here are 5 more ways to save on auto insurance:
1. Bundle Your Insurance! Many well-known companies (like Geico, State Farm, and All-State) insure more than just automobiles. Often, they also insure homes, boats, motorcycles and lives too. If you have multiple vehicles, you are likely to receive discounted insurance.
2. Keep Driving That Old Car! From an insurance standpoint, it’s best to drive your vehicle into the ground. If your insurance premium is $500 and your car is worth less than $5,000, then it is not economical to carry collision and comprehensive insurance, for example. As a general rule, if you car is worth less than 10 x your premium, don’t bother with collision coverage insurance.
3. Carpool! Low mileage drivers who typically carpool may be eligible for a low-mileage discount to save hundreds.
4. Go Back To School! Most insurance providers offer discounts for people who willingly attend a defensive driving course to brush up on their skills. Some classes are even available online.
5. Install Anti-Theft Devices. You may be offered a financial incentive to install GPS tracking, a car alarm, window sketching, steering wheel bars or an ignition shut-off device.